MACD, EMA, Know sure thing, Chopy Market - high adaptability

The MACD, EMA, Know sure thing, Chopy Market - high adaptability indicator is a comprehensive technical analysis tool that combines multiple momentum and trend filters to identify high-probability trading entries. By integrating the Moving Average Convergence Divergence (MACD) with trend-following EMA, the Know Sure Thing (KST) oscillator, and a Choppy Market filter, the script aims to reduce false signals during sideways price action.

Usage

The script is designed for traders who require a filtered approach to MACD crossovers. To use the indicator:

• Trend Filtering: Enable the EMA filter to ensure long trades are only taken when price is above the 200-period EMA (and vice versa for shorts).
• Momentum Confirmation: Use the Know Sure Thing (KST) indicator to confirm MACD signals with a secondary, time-delayed oscillator that filters out market noise.
• Volatility Filtering: The Choppy Market filter detects non-trending phases; users can set a threshold to block entries when market activity is too low or inconsistent.
• Exit Strategies: Choose between three different exit methods: ATR-based targets, Lowest Low/Highest High lookbacks for dynamic stop losses, or fixed percentage targets.

Details

The script executes a multi-layered logic sequence. The core signal is generated by a customizable MACD crossover. This signal is then validated against user-selected filters. The "Choppy Market" logic, based on concepts by TradingRush, evaluates price movement consistency over a 10-bar lookback to assign a trend score. The KST component provides a weighted sum of Rate of Change (ROC) values, offering a smoother momentum perspective than standard oscillators. The strategy implementation includes built-in slippage and commission settings to provide more realistic backtesting results on the TradingView platform.

Settings

MACD Settings

• Fast/Slow Length: Determines the periods for the two moving averages used to calculate the MACD line.
• Oscillator/Signal MA Type: Choose between SMA or EMA for the MACD and Signal line calculations.

Know sure thing

• ROC/SMA Lengths: Four distinct pairs of ROC and SMA settings to calibrate the KST momentum calculation.
• Signal Line Length: The smoothing period for the KST signal line.

Chopy Market

• Line: The threshold value used to define whether the market is currently in a "choppy" state.

EMA Settings

• EMA1 Length: Sets the period for the primary trend-filtering exponential moving average.

Exit Conditions

• Exit Condition: Dropdown to select between ATR, Candle-based (High/Low), or Fixed % exits.
• ATR Factors: Multipliers for setting profit and loss levels based on Average True Range.
• Lookback Lengths: Defines the number of previous candles used to determine the lowest low or highest high for stop losses.

FAQ

How do I access the MACD, EMA, Know sure thing, Chopy Market - high adaptability indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can I use only the MACD without the other filters?

Yes, you can toggle the EMA, KST, and Choppy Market filters off in the "Indicator Combination" settings group.

What is the default risk management setting?

By default, the script uses 100% of equity per trade with a simulated commission of 0.01% and a slippage of 15 ticks to provide conservative backtesting data.